The Transportation & Logistics sector has seen significant transformations in recent years, especially during the Covid-19 pandemic. Our updated “Future of Transportation & Logistics” report delves into key aspects of the sector, including its evolving structure, financial trends, and service innovations. It also examines how prepared businesses were to handle pandemic-induced market changes, while offering a comparative analysis of major 3PL (Third-Party Logistics) players and insights into warehouse automation challenges and solutions.
Key Insights
- Sector Growth and Recovery:
From 2016 to 2019, the 3PL sector showed consistent growth but was impacted in 2020 due to the pandemic. However, it quickly rebounded, recording an average compound annual growth rate (CAGR) of 21% from 2020 to 2021. - Pandemic’s Impact on Demand:
The pandemic led to a surge in demand for transportation services, which caught many 3PL companies off guard and exposed gaps in operational efficiency. The Greek 3PL sector, in particular, ranked lower compared to other countries, highlighting its unpreparedness to cope with sudden changes. - Fragmented Greek 3PL Market:
The Greek 3PL market is highly competitive, dominated by small to medium-sized players. The top 15 companies control 26.1% of the market, equivalent to EUR 706.7 million. While there is an upward trend in net sales, the decline in EBITDA suggests a challenging balance between profitability and market share. Additionally, a drop in gross profit margins reflects rising costs over the past three years and fierce competition.
Industry Trends
- Focus on Sustainability:
Companies are increasingly adopting sustainable practices to meet environmental goals. - E-Commerce Growth:
The expansion of e-commerce has driven demand for efficient logistics and faster delivery times. - Technology Adoption:
More businesses are turning to advanced technology solutions to enhance efficiency and competitiveness.
Warehouse Automation Challenges and Solutions
Many Greek logistics facilities are outdated and unable to support modern market demands. Most fulfillment centers are small and lack the technical infrastructure needed for current operational standards. To address these challenges, KPMG developed the Modular Warehouse Automation (MWA) methodology. This approach uses robotics technology to gradually automate existing warehouses without disrupting daily operations. The solution is tailored to individual business needs and offers scalability for future automation expansions.
By analyzing various parameters, companies can determine the appropriate level of automation to invest in, providing a pathway toward fully automated warehouses in the long term.
Conclusion
Greece’s Transportation & Logistics sector has recovered from the pandemic and continues to grow, though it remains fragmented with small and medium-sized 3PL providers dominating the market. While net sales are on the rise, companies face rising costs and intense competition, leading to challenges in maintaining profitability. In response, key players are focusing on improving operational efficiency, embracing technology, and implementing sustainability initiatives that support end-to-end sustainable supply chains.